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New Year! New You! Get financially fit in 2019!

Local expert explains how to get control of your personal finances right now.

Financial experts say Americans are struggling, but they don’t have to. In fact, many are living paycheck to paycheck and are not saving enough for retirement.

Experts say while many people understand the importance of getting healthy and physically fit in the New Year, others don’t make the same connection with their personal finances. Local financial professional Mike Kojonen, owner of Principal Preservation Services, shares an important checklist of DO's. They are all actions that you can take immediately.

Don’t let your personal finances overwhelm you in 2019! Now, let’s get started.

First: Take a Financial Assessment 

  • The starting point is going to be different for everyone. You need to take a look at your entire financial picture to make a proper assessment.
  • Take inventory of your finances. Look at everything from your checking account to credit card debt to your 401(k).

Second: Be Specific

  • Once you’ve taken your assessment, choose a goal.
  • Be specific. Instead of setting a vague goal like improving your financial picture, choose a clear goal like increasing your 401(k) contributions, starting an emergency fund or paying off debt.
  • I know it’s going to feel overwhelming, but the best thing to do is pick one.

Third: Make a Long-Term Plan 

  • If you want to feel more secure in your financial future, it’s time to change your mindset to think long-term.
  • People who come into our office for the first time often say they are worried about running out of money in retirement.
  • It’s a legitimate concern as a recent study shows a quarter of baby boomers have nothing saved for retirement, and nearly half will live off Social Security benefits.
  • A good rule of thumb is to contribute 10-15 percent of your income to your employer-sponsored 401(k) or your other retirement accounts.
  • Principal Preservation has a retirement calculator on their website that will show you how your extra savings add up.

Finally: Ask for Help 

  • Be patient! Change takes time. You won’t see big changes after one week.
  • If it’s getting to be too much to manage on your own, ask for help.
  • It’s not always easy admitting when you don’t know something. Many us feel embarrassed or needy when we ask for help, but a financial professional isn’t going to judge you.
  • Find a trusted advisor who can keep you on track.

 

 

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